A company must decide between scrapping or reworking units that do not pass inspection. The...
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Accounting
A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective units that have already cost $304,000 to manufacture. The units can be sold as scrap for $180,000 or reworked for $228,000 and then sold for $430,000. If the company decides to rework the units, incremental income equals: A. $202,000 B. $(101,000) C. $48,000 D. $22,000
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